Born from a conviction that there has to be a better way to protect both businesses and consumers from poor financial decisions and that to do so, any new understanding had to account for the very irrationality that makes us human... our behaviours.
Be-IQ is delivered via an API to enable seamless and rapid integration into any service, however it can also be run as an application using our own front-end UX. It processes a series of questions and responses, grouped into seven modules, that cover risk, behaviours and capacity for loss.
To your client, it provides a full but easily understood report that increases their comprehension of their financial decision making strengths and weaknesses. With over 5,000 permutations, the report helps makes sense of how behaviours can both help and hinder.
For businesses it outputs up to seven individual behavioural scores but, through the use of unique algorithms developed directly from our research findings, these outputs are then weighted and statistically processed to arrive at a Behavioural Risk Score.
Psychometrics, loss aversion, capacity for loss, confidence and time horizon.
Research has shown that behaviours such as confidence and loss aversion play a significant, but often unconscious, part in risk-related decisions. To not account for these can inevitably lead to poor outcomes for both client and business. Behavioural IQ accounts for these behaviours along with capacity for loss and time to deliver a single Behavioural Risk score that can be easily mapped to investment solutions. Our unique algorithm draws on our research work to express a single risk score that is far more representative of a client’s true risk personality than traditional psychometric tests alone.
MIIFD II is one of the most important changes taking place in financial markets, effecting Banks, Advisers, and Wealth Managers. With a strengthening of the rules around suitability testing, it’s more important than ever that tools, such as risk assessment profiling, and tools to test a client’s knowledge and experience, are fit for purpose and are appropriately designed for use with your clients.
Hosted on Amazon's Elastic Compute Cloud (EC2), Behavioural IQ benefits from the most reliable and proven cloud hosting service available. It can scale instantly to cope with any peak traffic demands whilst its API provides the rapid response times necessary for enterprise services today. There is also the option, for those institutions who prefer to do so, to host on your own infrastructure.
Behavioural IQ requires a core of just three of its seven modules to produce a viable Behavioural Risk score, reducing user completion time by up to 65%. The ability to turn the other four modules on and off enable businesses to deploy the service to appropriate degrees wherever in the client journey.
Behavioural IQ isn’t just a risk profiling tool, it presents a client servicing and marketing opportunity. Use the administration console to compare and mine data or bring the same functionality directly into your own services using the API. Highly targeted, relevant and tailored communications can now be possible.